On October 19, 2020, Chinese beauty brand Perfect Diary announced Zhou Xun as its first global spokesperson. /advertising poster
“Once Perfect Diary’s earnings report came out, the start-up of a national beauty brand was directly pronounced dead.”
Even if you don’t care about national makeup, as long as you are a deep user of any social, grass and short video platform, it’s hard not to have seen the promotion of Perfect Diary. It’s not even called a screen, it’s a blood bath.
The perfect diary’s crazy placement, began with the seeding platform. /B station @knife sister doris
The company’s first announcement after the launch of Perfect Diary was that the company was going to be a good one. However, the first earnings report announced after the listing of Perfect Diary showed that the company’s annual revenue of 5.233 billion yuan did not cover the loss of 2.688 billion yuan, of which the equity incentive was close to 2 billion yuan.
Where did all the money go? Look at the marketing expenses, a full 3.412 billion yuan. And only a mere 0.67 billion yuan for R&D, less than the skin of the former.
It is no wonder that the blogger @NewEconomyResearcher’s words have made a crowd of unhappy consumers like it.
The other brand he mentioned, “90% of the commission is given to kol” and “the whole company works for kol”, is hard not to remind people that last year almost all the treasure on Li Jiaqi’s body flower Xizi.
In the red sea of makeup, the new domestic brands to emerge, it seems to rely only on marketing. The result of the marketing frenzy, however, is that the money has gone into the pockets of the bloggers with goods.
The newest brand in the red sea seems to rely on marketing.
Take the most users, burn the most money
For the national makeup of the voice of bad, there is a good while not heard.
After all, it can take 2 years to take more than 3 billion yuan in sales, and in 2018 to beat a number of international brands, on the top of the Tmall double 11 makeup category, with 5 years to beat Marumi, Perrier and other old national products, to reach a maximum market value of $ 16 billion …… perfect diary of light, is really too dazzling.
As the only two in two or three years to break through 1 billion yuan in sales of national makeup brands, another strong player flower Xizi in 2020 sales, it is said to have 3 billion yuan.
Before that, Mary Kay reached 1 billion yuan sales, it took a full 10 years of Time.
After this battle, the brand founder raised his eyebrows, missed the opportunity of investors pounding their chests, consumers are still full of doubts, can not believe that the national makeup has really risen.
In June 2020, Hua Xizi collaborated with Zhou Shen, Fang Wenshan and Du Juan to shoot a brand Music video.
Take the perfect diary for example –
Look at the scene, indeed spread enough.
Both head bloggers are loved and a large number of waist and even ankle bloggers are favored, totaling nearly 15,000. No matter how many fans you have, you have a chance to get a share of the promotion, especially before big promotional festivals and after new products hit the shelves.
For those who don’t know, the heart says that Perfect Diary’s passerby is really good. The beauty section was left to discover that the outside had long been surrounded by the perfect diary. As long as you are still online, you can’t escape the sniping of Perfect Diary.
The reason why perfect diary can make hot money and take off in place is actually due to timing.
The company’s parent company, Yixian, started out as an MCN, and is particularly familiar with the characteristics of bloggers who carry goods on various platforms. 2018 saw the start of contact placement on Xiaohongshu, just in time for it to rely on the marketing of major talent shows and variety shows to capture the freshly admitted users in the first place.
The percentage of KOL types chosen by Perfect Diary. /growth black box
Look on the new frequency, and indeed quite a national favorite.
In the past, it took at least 7-18 months for a big brand to launch a new product, but Perfect Diary can shorten it to 6 months, and at most 30 new products can be released in a month. The most exaggerated situation is that, today in shouting with the official blog to say what color lipstick, next week you can see the product you want quietly on the shelves.
We don’t know if it can become “the Chinese mainland version of L’Oreal”, but the name “ZARA in the beauty industry” is not a vain name.
The perfect diary in the past two years the record of new products, is the largest number of domestic beauty brands. /Bsite@knife sister doris
The price is even more heartwarming.
The products are basically under a hundred dollars, and in time for the promotion there are “second half price” offers. It is not difficult for die-hard fans to buy the same makeup at a single-digit price.
But depending on the quality, it is possible to buy once and be dissuaded.
Searching for the perfect diary, you can easily harvest all sorts of non-repetitive complaints: eye shadow rough flying powder, foundation off makeup patchy, lip glaze pluck dry showing lip lines, makeup remover cleaning power is very poor ……
Every beauty blogger, can find a different groove. /Bsite@LiuQiaoQiaoFarmer
However promotion often runs faster than bad reviews, and a steady stream of consumers are being drawn in by the freshness.
“About 250 million women aged 18 to 25 nationwide, about 120 million after removing women without makeup or high net worth, the perfect diary reaches about 40 million consumers, which is about 35% to 40% coverage ……” as revealed by a former mid-level executive of Yixian Electric information, the perfect diary can acquire the number of users, it’s almost at the end.
The time left for national products to improve quality and accumulate word of mouth is getting less and less.
Schrödinger’s “light of national products”
“Do marketing with your heart, do products with your feet!” –Consumers never show mercy in the face of crotch-pulling national makeup.
It is said that your honey and his arsenic, the big brand of good goods also some people shouted stepping on mines, not used to the product is also a common thing.
But which makeup of young girls, have not heard of, used Europe, the United States, Japan, Korea and Thailand open frame makeup? Paying tuition all the way, will not be easily fooled by a sentence or two of self-excuse of national products.
A handful of cuts, are uncovered.
That said, beauty companies invest in research and development, really not as much as people think. Even one of the international brands most willing to spend money on research – L’Oreal, the R&D expense ratio in 2020 was only 3.44%.
Given the difference in volume, we won’t compare capital investment. But looking at the R&D expense ratio alone, Perfect Diary’s numbers aren’t very good, at just 1.28% in 2020.
The same national products, such as Marumi, Perrier and Royal Family, have a worst rate of 1.41% and a superior performance of more than 3%.
In marketing investment, the gap is also very obvious.
In 2020, Perfect Diary’s marketing expenses were 3.412 billion yuan, with a marketing expense ratio of 65.20%. The marketing expense ratio of these national products mentioned earlier is 33.04%, 35.73% and 43.65% respectively.
L’Oreal’s marketing expense ratio, on the other hand, did not exceed 30%.
The time of the new is the time to put the most fierce. /growth black box
To say how inattentive they are, it does not necessarily hold true.
The chairman of Marumi has justified this: “Advertising is a rigid cost of FMCG products, and the R&D ratio of 2% is already considered high in the industry. Japan’s Shiseido R & D ratio is only 1.6%. 20% of the promotion costs we will not be reduced in the future.”
But people also said: “(In the future) also let the proportion of research and development exceed 3%.”
There are reports that the largest cosmetic production base in Asia, jointly invested by Yixian Electric and Cosmosis, went into operation in March 2020 and is expected to be put into operation in 2022, with an output value of 2 billion yuan. Perfect Diary’s own research and development laboratory, will also be built here.
However, what consumers see right now is just a fast-running embroidered pillow.
Before the “sea cast” type marketing became popular, the national makeup mainly relies on advertising and Film and Television drama implantation for promotion. / “Fuyao
The first one is the “sea cast” tactic, which seems to be not so ugly.
The main oriental makeup concept, from brand image to appearance design, are very Chinese style. Recently started to enter The Japanese market, lipstick on the first day of shelves into the top three sales hours list, must have caught the trend of Japanese “Chinese makeup”.
But Hanasiko has also had its moments.
In one live broadcast, Li Jiaqi showed the efficacy of Hanasiko’s makeup remover wipes, resulting in a total of two sheets, taking about a minute to barely finish cleaning the lipstick on her arm. Although there are still a lot of consumers to redeem them, but there are still a lot of people were discouraged by this.
Of course, the times are different today. L’Oreal, which is already an international giant, has come this far but has played a hundred years of reckoning. Newly minted beauty are but a few years old, they have been attacked by all sides. Watchers anxious, national makeup more anxious.
So Yixian electric business while relying on affordable beauty products to pull new customers, while crazy to acquire, incubate a variety of price points and segmentation of the brand.
Affordable skincare has a complete son heart selection, nail polish and eyeliner has a small Orting, high-end beauty has Galénic, high-end skincare has Eve Lom, girls beauty has PinkBear…… next, they are ready to enter the pupil market.
The national makeup “circle” of “land” is getting bigger and bigger, but it seems to be farther and farther from the expected look.
The style of national makeup
The “fast” can not be relied on to pull up
In fact, the national makeup is not all in the state of not making ends meet.
Since 2017, Marumi’s net profit margin has remained between 20% and 30%, and Perrier has more than 10%. They have the advantage of being more firmly rooted and their performance is not overly swayed by marketing.
With the perfect diary, flower west of them highly dependent on online channels, another out of the circle of national makeup Maogeping, the first mainly rely on offline to open sales, customer unit price is also much higher than the first two.
The price of Mao Gopping products, no one is less than 150 yuan. /CBNData
Who is Mao Gopping? It is the master who can help 40-year-old Liu Xiaoqing, who plays Wu Zetian, to create a makeup look from 18 to 80 years old. And its brand launched the primer products, but also the threshold is very high existence. You also have to rely on the counter girl hand teaching, in order to make people intuitively feel the advantages of the product.
Time and effort, in exchange for customer trust. Public interview information shows that the average repurchase rate of Mao Gopin offline counter in more than 50%.
Even on the short video express, personal demonstration of makeup skills, cooperation with netizen bloggers to change makeup, after tasting the sweetness of the hot search, Mao Gopin is rarely in the price of the big line of concessions, at most is the addition of large samples, send coupons, additional small gifts.
After the makeup alteration video exploded out of the circle, the netizen blogger @Late Night Xu was called upon by fans to ask Mao Goping to create a full makeup for her.
And they rarely put down for sales, insist on the brand’s high-end positioning experience ideas, thanks to years of tough times in high-end shopping malls and international big brands to grab counter space.
It has been proven that not only affordable national products can make the country buy. To know the 2000 launch of the 690 yuan highlighter, but the Mao Gopin family reign for 20 years “sales champion”.
Perhaps some people say, the era of the outbreak of e-commerce, consumers do not love shopping, who still care whether the mall has a national makeup counter? But perhaps, those brands that are profitable both online and offline, are more vital than brands that rely mainly on e-commerce.
However, more national makeup, still in the circle of sentimental money at the same time, further solidified the impression of “poor quality”, is tantamount to buying a casket and returning the pearl.
This, all the way to the speed of the national makeup will not be ignorant, but they do not care too much.
The Westlake Seal gift box launched by Hanaziko in October last year was a hit.
In the end, is it only national products that we expect? Certainly more than that.
What consumers are expecting is for domestic beauty to become a hard currency that has worldwide tap water without marketing, and for domestic toiletries to become a price boosting giveaway in high-end hotels ……
For this reason, Chinese consumers can even be very tolerant.
The crazy launch is to open up the market, the product stepped on because it takes time to develop …… As long as it does not involve the issue of values, the brand does not even need to explain, everyone can digest and understand on their own.
But if you are playing the “light of national products” banner of self-aggrandizement, while the day after day for several years to launch a chicken rib products –
This kind of national makeup, do not want to stop.
Perfect Diary’s Parent Company Reports First Earnings After IPO: Revenue Up 70%, Marketing and R&D Expenses Surge,” Zhang Xinyu ZXY, Interface News, 2021-03-11
Perfect Diary’s Traffic Trouble,” Box Lunch Finance, 2021-03-11
How far is Perfect Diary from “China L’Oreal”? , Yuan Chuan Institute, 2020-12-10
The perfect diary that lost 2.6 billion yuan: seemingly cheap, but it’s all a ruse”, Daily People, 2021-03-17
How far is Perfect Diary from “China’s L’Oreal” after losing $2.7 billion a year by burning money like crazy? The company’s research office, 2021-03-17
Sun Huaqing, Chairman of Marumi: 20% of promotion cost will not be reduced in the future,” Daily Economic News, 2020-05-29
“Perfect Diary Burns Money to Buy Traffic, Once Honey Becomes Arsenic”, Corporate Research Room, 2020-03-17
After reading more than 1 million microblogs, we found the secret of national beauty products”, Data Iceberg, 2020-11-07
“With less than 1% of R&D expenses, how to be China’s L’Oreal for domestic beauty? , Shan Liren, DoNews, 2020-11-11
[Interview] Off-line, product “high threshold” …… Inventory of Mao Gopping’s “alternative” development road, First Financial Business Data Center, 2020-04-08
National color cosmetics Huaxizi officially entered the Japanese market,” Zhang Xingyu ZXY, 2021-03-12
What is the growth strategy behind Hanasiko as annual sales soar 25 times? , Sober Zhang, 2020-11-18
“Sales of nearly 3 billion in 3 years, how does Huaxizi do growth? Sister Doris, 2020-10-28
What growth strategy does Perfect Diary rely on? , knife-sister doris, 2019-08-26
The perfect diary valued at 4 billion dollars, will it be the Internet version of L’Oreal? , knife sister doris, 2020-09-15
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